Department of Transport and Main Roads v Mahoney

The Department of Transport and Main Roads sought to compulsorily acquire land owned by the respondents for roadworks. The respondents argued that the land had been downzoned by the local government prior to the acquisition, and that this downzoning was part of the scheme of resumption. The case was heard in the Queensland Court of Appeal, which was asked to determine whether the downzoning constituted a step in the resumption scheme under section 20 of the Acquisition of Land Act 1967.

The court examined whether the resuming authority needed to be directly involved in the downzoning decision for it to be considered part of the resumption scheme. It found that there was no requirement for the resuming authority to have been involved in the downzoning decision. The court also considered whether an inference could be drawn that the local authority's decision to downzone was part of the resumption scheme or was made with the intent or in anticipation of the resumption. The court held that such an inference was not open on the evidence presented.

The appeal was allowed, and the orders of the Land Court were set aside. The matter was remitted to the Land Court for the determination of compensation and any interest payable to the respondents. The court held that the downzoning did not constitute a step in the resumption scheme and did not entitle the respondents to additional compensation.